Macroeconomics Assignment – Economy of Lebanon
This assignment is directly related to the material covered in the lectures. Make sure your analysis is logical and show that you can think like an economist.
FAQ for this assignment:
1. What types of evidence can we refer to outside of the lecture notes?
In principle, any evidence that you think supports the argument is acceptable: Newspaper articles, data and statistics, research reports, etc. Cite the source and original author when using research or opinions of others using APA. Remember that plagiarism is not tolerated. Avoid copying and sharing answers from your colleagues or copy pasting from the internet or you will get a zero
2. Do we have to apply the economic concepts/theories taught in class? Yes, preferably, but you are free to use concepts and frameworks from previous or upcoming lectures, even outside our course material. The main assignment is to produce a fact–based, logically reasoned analysis of a real–world problem.
PART 1
Step 1: You have to choose a period of at least 5 years for the economy of LEBANON. The first step is to learn about the economy during this period. Look at a textbook on economic history, search government websites for articles about that period, and read old newspapers and magazines to find out what people said during the period you have chosen (collect all the source information and include in–
text citations using APA and in the bibliography). Collect at least the following data for your time period. for the Economy of LEBANON:
1. Unemployment rate
2. Interest rate
3. Real GDP
4. Consumption
5. Investment
6. Government Expenditure
7. Net exports
8. Balance of payments
Part TWO
Step 2 is to identify the macroeconomic data collected in part one for the period in question. At a minimum, collect the above data sets for your time period.
Using a spreadsheet program (Excel, SPSS, etc.), plot the data in a table, identify each component and its value for a given year, and then graph the data by plotting each of the macroeconomic measurement series (e.g. changes in the unemployment rate over 5 years) separately (the data series on the vertical axis, the year on the horizontal). Briefly describe what the graph shows. [20 points]
Step 3: Next, perform a multivariable linear regression of Lebanon’s GDP function using your favourite spreadsheet software. Plot the estimated GDP for 2022 as a linear function. Provide full explanations and supporting calculations. Based on your research, which components of GDP are statistically significant and which are not? Hint: Perform a t–test and explain your analysis. [30 points]
Part 4 Written Component. After collecting and graphing the data and learning about the time period, use the AD/AS model developed in class and in the textbook to analyze the important economic events.
What are the relationships between these components? Draw the appropriate graphs and include a textual analysis of how and why the curves shift. [20 points]
Part 5. Based on your analysis, suggest appropriate macroeconomic means (instruments/policies) to stimulate LEBANON’s economy (fiscal as well as monetarny policies). Carefully explain your position.
Your research paper should be structured as follows:
Part 1. Introduction: this part should discuss the topic and contain a clearly defined statement of your task.
Part 2–4. Body: The body of your paper should discuss where the data was found and what it says about the state and direction of the economy of LEBANON. Include some background information on the major economic issues of your time period. Analyse the economic events using relevant
MACROECONOMIC theories and comment on the applicability of the theories used and point out their shortcomings in the context of your period.
Part 5. Conclusion: In the conclusion of the paper, you need to reiterate the main points and summarise the arguments you have made in presenting your case.
Part 6: Bibliography of all sources used using APA in alphabetical order.